For 20 years the Walker’s Doughnuts business has been feeding its customers’ taste buds with pillow-soft sweet treats, steaming coffee and delicious hot dogs.
The chain stands out for its American diner nostalgia. Add in a passion for customer service, and it’s no wonder the family-owned business has spread to 34 stores throughout Victoria and Queensland, serving more than 50,000 happy customers weekly.
And now, with strong demand and a big plan for expansion, the doughnut chain is ramping up its growth.
The brand has built up a formidable reputation across Melbourne, with a presence that includes a 24-hour flagship store on Elizabeth Street and the Flinders Street Station store. These high-traffic locations, along with the Spencer Street Station store, have already demonstrated the brand’s success in major transport hubs.
The concept has taken off around the city too, as franchisees tap into the love for the product.
Now founders Jim and Rose are leveraging the brand popularity to bring the Walker’s delights to even more suburbs across Melbourne, and further into regional Victoria.
“There are already two stores in Bendigo, and towns of this size have the capacity for three locations,” Jim says.
Baking in the capacity for growth
To kickstart the expansion, last year the business moved into a warehouse six times the size of the previous facility.
Jim says, “When we moved into our new warehouse we were future-proofing for growth. It’s so large we still have plenty of room to expand in the space”.
The doughnuts are handmade each day, using traditional techniques, and delivered fresh to Walker’s Doughnuts stores.
The strategy to plan ahead for significant growth means the warehouse has enough capacity to ensure prompt deliveries as the network of stores grows.
As well as stand alone stores, Walker’s is also spreading its wings throughout service station operations, starting with a Traralgon business in the Gippsland region.
“We’re excited about this retail option and expanding with an experienced, professional operator,” Jim says.
He is predicting more growth in the Gippsland area, and is targeting key markets such as the border town Albury-Wodonga, and Echuca and Shepparton in Victoria.
Ambitions for Queensland and beyond
The Walker’s Doughnuts story is not just a Victorian tale though. Victorians and Queenslanders alike can expect to see the brand move into their local shopping centre.
Thanks to the success of two brand ambassadors and brothers, the retro-themed chain that celebrates the glory days of the American diner is gaining devotees in the Sunshine State.
There are already seven sites in Queensland, and the brothers are ramping up development to drive the growth around the Southeast region.
The franchisors have a smart strategy to understand the local market. They are using pop-up stores to gain on-the-ground data about potential sites, finding out what sells in preparation for setting up permanent locations.
“Pop-ups are a good way to introduce the brand to a new state,” explains Jim. “We’re not a huge business, so it’s a really cost-effective way to get traction. We set up a factory to service the pop-ups until the franchised stores are open.”
Walker’s is also heading to the north of the state, with growth predicted in North Lakes.
Long term there are plans to take the doughnut chain across the country, to New South Wales, South Australia and Western Australia.
“We have a lot of enquiries but we’re focusing on delivering on our strategy, not rushing into a new area. The development plan needs to be compelling,” Jim adds.
The company is ready to harness the brand’s goodwill, and share its delights with the rest of Australia – in time.
“We’re looking for the right locations and the right franchisees, to build a national footprint for Walker’s Doughnuts,” Jim says.